The commercial banks are being stingier than ever with super-low interest rates on savings, and that allowed BEL to cash in big time with its latest debenture offering.
The power company opened a $25 million dollar debenture offering on May fifth, and it reports today that as of today, it been fully subscribed.
That's 32 days before the advertised closing date - and a sign that there's a lot of money out there looking for a secure, higher interest yield. This series of debentures yield a fixed interest rate of 6.5 per cent and will mature in 16 years on December 31, 2030.
The company reports that it had to turn down 20 million dollars in surplus offers for the debentures.
So, the offer is now officially closed and BEL says the proceeds will be used to refinance the $24.8 million Series 3 Debentures which carried a 10% interest rate.
The company has consistently paid interest on time to Debenture holders.
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